McKesson Corporation (NYSE:MCK) today announced that it has signed a definitive agreement to acquire Israel's Medcon for $3.05 per share or approximately $105 million on a fully diluted basis. McKesson is a Fortune 15 healthcare services and information technology company.
Medcon is a provider of Web-based cardiac image and information management. Medcon has more than 300 system installations around the world, including more than 100 customers in North America. The company reported sales of approximately $17 million in 2004.
Medcon's comprehensive approach to cardiology will support McKesson's strategy for enterprise image management as a component in building electronic health records (EHRs). McKesson's EHR strategy includes enterprise access to all forms of patient data ranging from structured clinical findings to diagnostic images, waveforms, document images, voice and video, all using industry-standard storage methods.
McKesson Provider Technologies president Pamela Pure said that the addition of Medcon's integrated cardiology imaging and IT solution would accelerate McKesson's reach into one of the fastest-growing, high-cost medical specialties in hospitals.
"Less than 15% of hospitals in the US have a robust, integrated solution for cardiology, which next to radiology is the largest producer and consumer of images and associated patient information. We see a significant opportunity to grow our position in a $250 million market category that's expected to encompass more than 1,500 decisions over the next five years. The addition of Medcon should also stimulate added growth in our Horizon Medical Imaging picture archiving and communication systems (PACS) business, which has been highly successful -- in the past year alone, we added a record number of new customers, increasing system usage by 40%."
Medcon chairman and CEO Uzi Blumensohn and all other personnel associated with sales, installation, development and support will become part of McKesson Provider Technologies.
Published by Globes [online], Israel business news - www.globes.co.il - on Monday, June 20, 2005